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The Kudlow Report

News/Business. Larry Kudlow. Larry Kudlow provides his unique perspective on business, politics and investing. New.

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China 15, California 12, U.s. 12, Us 12, Michigan 7, Haley Barbour 4, Arizona 4, Alabama 4, Michael Reagan 4, America 4, Margie 4, Ann Lee 3, The Usda 3, Baner 3, Larry Kudlow 3, Obama 3, Washington 3, Mississippi 3, Texas 3, Nevada 2,
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  CNBC    The Kudlow Report    News/Business. Larry Kudlow. Larry Kudlow provides his  
   unique perspective on business, politics and investing. New.  

    December 10, 2012
    7:00 - 8:00pm EST  

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immunogen, there wasn't anything that came out that should make these stocks jump big, but if i wait until they are up big, i have done you a disservice. but they're speculations and nothing short-term was revealed that is that spectacular that you got to chase. there's always a bull market somewhere. i promise i'll find it for you, right here on "mad money." i'm jim cramer and i will see you tomorrow. i'm larry custody low. this is kwoez custody. all right. some possible optimism on the fiscal cliff. the gop seems to be in a strategic retreat and is likely to allow middle class tax cut bill to pass before december 31. now that's what my washington contacts are telling me. there are many bells and whistles. i believe that's likely. the president went to detroit today to send the fiscal plan
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and came out against the michigan right to work effort like he did in wisconsin and he's going to lose this one in michigan. meanwhile the economy and jobs are improving but the use of budget busting food stamps continues to soar. could the aggressive food stamp reason why? wait until you hear some of the radio ads. proeb jumped head first into a right to work law today in michigan. eamon javers has the details. good evening. >> reporter: good evening. we are monitoring fiscal cliff talks. it's been radio silence from democrats and republicans in washington. they're sticking to preagreed upon talking points explaining that lines of communication are open. we don't know what it is speaker
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baner and barack obama are hashing out behind closed doors but more republicans are gravitating to the idea of compromising on a tax rate increase so long as they can get what they want for spending and entitlement cuts. listen. >> those rates are going up. we either act now to keep them from going up from as many people as possible or they will go up on everyone. that's a disaster. let's recognize reality, take care of as many people as we can. >> meanwhile, you're right. the president was in detroit where he continued his outside-inside game of running a campaign-style effort to jin up popular support for the fiscal cliff. because he was in michigan he took a whack at the proposed legislation -- the so-called right to work legislation. listen to the president. >> these so-called right to work laws don't have to do with economics. they have to do with politics. [ cheers ] they're really talking about
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giving you the right to work for less money. >> obviously a pro union crowd there. a lot of folks from the uaw there in detroit. but the president continuing the campaign-style effort. seems to be paying political dividends at least for now by rallying public opinion on his side on the fiscal cliff. the republicans, now that the election is over don't have a single figure who can go out to do the same thing. it gives the advantage to the president in terms of the bully pulpit. we'll see how negotiations turn out in the end. >> eamon, thank you very much. as always. despite president obama's objections and protests michigan will become the 24th right to work state. that may happen tomorrow. our next guest has a sample. please stop lecturing others and get your own job done. joining us is chase bolger, michigan speaker of the house.
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what is president obama doing? he did this in wisconsin and got whooped. is he going to get whooped here? >> good evening, larry. he did come, weighed in and he disagrees with us. that's okay. we disagree with him. >> what's wrong with a worker choice, paycheck protection? why is it controversial? >> you asked the right question. it's all about workers. that's our focus. it's about the foworkers of michigan. they work hard to provide for their families and grow our great state. it's clear they are focused on politics. we're focused on the hard-working men and women who make our state so great. >> what i gather from news reports -- tell me if this isn't right. the teachers union is boycotting and starting to close schools tomorrow in protest. that sort of thing happens, they ought to get fired. first of all, is it true? are they going to boycott school days and hurt the kids?
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>> we are seeing kids closed because teachers are calling in. it's unfortunate. they need to put kids first. we need to put our future first. that's what the law does. if we get to the debate on the issue, we're asking to give workers the choice so they can make the decision about which organizations they want to join and which they don't want to join. unfortunately a lot of politics get drug in. the issue gets put aside. unfortunately politics demonstrates -- just takes over the issue. we're not going to let it happen. we're going to focus on the people who matter, the citizens of the state. >> does this bill which i take it governor snyder will sign tomorrow, if i'm not mistaken. does it end collective bargaining, unions? >> it has nothing to do with democrats and republicans. it does not. it has nothing to do with labor versus management. it does nothing to change collective bargaining. when the bill becomes law, unions will have the right to make their case. now workers will have the right
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to make their decision. >> can i switch gears briefly on the question of detroit city, its terrible finances, the likelihood that it's going into bankruptcy, some of the local politicians asked president obama to bail out detroit city. do you think a bail out like that's coming? >> i think we need detroit to accept responsibility. we need a healthy detroit. in michigan we want a healthy detroit. we need detroiters to accept responsibility. they are free to ask the president for more money. i can tell you there will not be more money coming from lansing. we need to get detroit fixed and move forward together. >> apparently mayor dave bing, the former basketball great and a good businessman before he was mayor says, and i will quote -- he blames the culture of victimization and entitlement for detroit's woes. i can write that large for the entire usa budget deficit but let's stick to detroit.
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is the mayor correct? >> i will leave mayor bing to stand for his own comments. i believe we need a healthy detroit and there is great opportunity in detroit just as there is opportunity all over the state. we are turning our state around. we want to help detroit turn around. that's how it needs to happen. we need to help detroit turn around. this is not something we wish to do to detroit. it's something we want to do with detroit. >> thank you, sir. we appreciate it. folks, have you heard the ad on the radio lately? >> look at margie. she looks amazing. >> she does. >> i wonder show he stays fit. what's her secret? >> she told me food stamp benefits her her stay fit and she stays active. >> just part of a taxpayer funded ad campaign from the u.s. department of agriculture encouraging seniors to get on food stamps because they will
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make you look better. we have more news on the food stamp front that will make you angry and that's later in the show. with the tax and fiscal cliff looming 21 days from now, is there a reason for even some slight optimism this evening? joining us now in studio, we welcome distinguished house members carolina maloney of new york and larry kudlow's house member in manhattan. and the republican from arizona. as always, welcome to both of you. dave, let me ask you this. i'm hearing a lot of this that there is a strategic retreat by the republican party. 57b and that they are not either in the house or senate going to block the middle class stax tax cuts which proliferate in terms of the bill. is that true, sir? >> i haven't been invited into the strategic retreat caucus. look. i hear more on the news than i
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ever actually come across in reality in d.c. so far, i do not see a willingness, particularly on the conservative side of the caucus, to give away our principles. >> i heard rand paul thursday night on this show. he sent a message to majority leader reed that he, rand paul, was a tea party caucus guy, free market guy, will not filibuster. he wants to get through it. he's going to vote against tax cuts but will not filibuster. there are a coup ohlele dozen house members, as you know, who signed the bipartisan letter saying they will work through this. maybe you willet 39.6%, maybe 37 or 38. but the bulk of the tax cuts, the middle income tax cuts which will pass the democratic caucus and the senate, will go through. i'm thinking they will go through before the end of the year. >> remember, from many of us on
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the republican side we are fixated on spending. a number of those things, particularly in the entitlement side which we believe bury us as a country become it is great battle for the other side. >> there aren't going to be spending cuts, are there? carolina, be honest with me. i'm larry kudlow, your old pal. there won't be spending cuts, entitlement cuts. >> every economist -- simpson, bowles say it has to be balanced, have revenue increases and spending cuts. you can't cut your way to prosperity nor can you solve the problem with revenues. everyone agrees the president and i believe speaker baner that it has to be a balanced approach. i do believe that the american public certainly supports the middle class tax cuts. that would be a nice, good holiday present to americans. >> and they have the polls that show that. >> 98% of america would be affected by this. >> i don't favor it.
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but politics are politics. i get it. the election spoke clearly. the american people spoke clearly. many republicans are signing letters that it has to be a balanced approach and they have walked away from the no new taxes pledge and said they would support a balanced approach. >> i understand, dave, that this is not the reagan supply side conservative position. i'm not jumping up and down about this. meeting the fiscal cliff or avoiding it might not be a bad thing, but i want to ask you. we talked about spending cuts. 60 billion dollars budget. will we get that much of a spending cut to go along with the tax increases on the upper end and the tax extensions in the middle? >> the sequestration is its own
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silo. you and i may see, will they change the mix on spending reductions? i think the dollar amount stays. >> the dollar amount. so $60 billion, more or less. >> more or less. >> it's homeland security, not just defense. >> yeah. that's always been one of the mischaracterizatio mischaracterizations. think of it as all national security. there's other parts that go into medicare providers also. >> can i possibly talk you into leaving the capital gains tax rate alone and the dividends tax rate? they're pro investment, pro capital formation. they help inves tors and retirees and help start new businesses. i know certain tax rates will goup whether i like it or not. can icon vince you to leave capital gains alone? >> it's all on the table. only two people know. that's president obama and speaker baner. i haven't spoken to them today. they're not talking publically.
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but they are negotiating. i believe getting closer. you have to realize as part of the budget agreement of 2011 we did agree on $1.1 trillion in cuts. that's already there. and i also believe that it's very important that we raise the debt ceiling when we do the fiscal -- >> you will never get it. let me ask you. will the democrats get an increase in and i understand they don't want congress to vote anymore. that could hold up the package. >> it could. from my view of the world, would you give up the ability? you will hear the talking points saying a well balanced approach. simpson bowls was a dollar of new revenue for every $3 in spending reductions. particularly in the explosion that is the entitlement? >> that's out the window.
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>> but what is the balanced approach? >> i would be thrill ed. i will ask my congresswoman. would you give up the debt ceiling? it's a constitutional prerogative. >> in this time when the economy is fragile, not long-term, but during this budget negotiations, i believe that it's appropriate and mark skrkszandy testified i putting that together during this budget negotiation because it was harmful to the economy. we're going to have a fight on the fiscal cliff. another on the debt ceiling. it's destroying confident in the markets and what bothers me, larry, you know the subprime crisis hit like that. there was no warning. we could have another one like that. >> somebody has to control spending. i think the debt ceiling over a
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period of time is one way to do it. i'm sorry to you both. i have to get out of here. >> only roughly 800 billion apart. they can come together and solve it. >> i think the main tax -- >> for the good of the country. i'm probably not going to like the deal but that's probably what will happen. >> thank you so much. quick programming note. i will come to you life from our nation's capital tomorrow night as part of cnbc's special all day coverage. rise above, mission critical. now how do you like this scenario? the u.s. government using our tax money to build up an electric battery firm but after it fails the company sells out to a chinese outfit who takes advantage of our own taxpayer dollars. now producing for japan. there is something wrong with this picture. we'll have the details in a moment. please don't forget. free market capitalism is still
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the best path to prosperity. it may not entirely show itself in this fiscal cliff fix, but the fix may be coming. i'm kudlow. we'll be right back. try running four.ning a restaurant is hard,
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u.s. tax dollar funded battery marker a-123 systems is up for sale. the winning bid goes to -- china. so i asked was red china rising why u.s. taxpayers have to finance their battery companies. here's ann lee, author of "what the u.s. can learn from china," professor of nyu and visiting professor from beijing university and author kwof "death by china" and cnbc contributor. ann, let me go to you first. if we, the u.s. taxpayer and government are dumb enough to build a goofy battery company that goes bankrupt why shouldn't china scoop it up? >> i think this is a great story. first of all, taxpayer money wasn't wasted. all that money from the government went to help property plant and equipment here on american soil. and it's staying in america. chinese companies are not going to pack it up and move it to
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china. it's staying in the united states. they are going to hire u.s. employees to run it. that means more american prosperity. that's what we want. i think this is a win-win situation. the company that bought this is basically like the warren buffett of china. >> all right. let me get there. they are not buying the defense part of this. >> absolutely. that part isn't going to be a national security threat. >> i know we shouldn't have funded it, peter. i get that. i'm against that. but having done it, what's wrong with letting china buy it? >> if you look at the deal in isolation, there's nothing wrong with it. but if you look more broadly in the global chess game between china and us in terms of both economics and military it's an issue. here's the issue. china's m.o. is this.
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they basically buy american companies, strip them of technology and ship the jobs to china. case in point would be brantley helicopter. used to be in texas. 2009 china buys it. now all the production facilities are in jindao. this is the problem. the promise to keep the plant going. now a-123 is interesting. they have cutting edge technology which will be exported to china. that's the bigger issue. one company at a time, larry, is going over to china, helping to build their industrial base. and the other thing -- >> hang on a second. this is an important point. ann lee, i'd like to get something from this. okay? if the u.s. foreign investment advisory board okays the deal, fine. but they counterfeit our goods. the chinese have a lot to answer
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for. shouldn't we make a deal? we let them buy the company but we should make a deal and they should somehow stop all the pirating of our technology? >> i think the chinese government is already trying to crack down on counterfeiting and other things we have been pressuring them to do. it has to be case-by-case. this is a private company, not a state-owned enterprise buying a u.s. company. i would say there are many other chinese companies that are buying u.s. companies. i would disagree with peter's analysis that most of them strip them down. in fact, if you look at the research, there was something that said they looked at 170 m & a transactions bought by chinese companies of u.s. companies. most of them have basically kept all of the employees at the u.s. running and didn't take anything back to china.
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>> real quick, peter, please. >> sure. she's simply wrong. this company, along with others, is going to lose the jobs, larry. we're letting it go one company at a time. that technology is also raising the issue, larry. much of this stuff is dual use. we have to pay more attention to this issue. >> i have to leave it there. thank you very much. ann lee, welcome to the show. peter novarro, welcome back. who will save the twinkies? the deadline was today for companies to get in to bid for host esz. who wants to put their money where their cream filling is? ha, ha, ha. we'll have a report on this in a moment.
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today is a key deadline in the hostess bankruptcy saga. the official day for buyers to get a seat at the twinkie table. good evening. >> reporter: good evening. bidser expected for the 30 prands up for dprabs. today the bankers have been contacted by 150 possible buyers but only a fraction would emerge as credible and committed candidates. hostess will sift through the offers before disclosing the bids in bankruptcy court next month. until now the process has been a feeding frenzy of financial
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sponsors like the owners of pabst blue ribbon, regional bakeries, all gearing up to make a run at the brands. even individuals, major underdogs in the process, are vying to be taken seriously. a potential bidder declared his interest last week in a handwritten note filed with the bankruptcy court. hey, larry, whatever works. at stake are piecemeal brands, not the entire company. that possibility ended liquidation. wonder bread has drawn some of the most interest. they haul in roughly $500 million a year. far lucrative than twinkies which sees sales less than $70 million. many people are surprised to know twinkies aren't the most lucrative property but they are the most popular. the last shipment is happening in chicago tomorrow morning. 20,000 boxes. >> they are going to go like wildfire. >> you're flying there tonight.
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>> fedex for twinkies. many thanks, kayla. we appreciate it. >> thank you. >> another food story but this is about food stamps. the number of americans using them has gone up astrono, ma'amcally despite the improving economy. could it be because the government is marketing food stamps, telling folks to go get them? don't answer until you hear what we have for you next on foot stamps. suddenly, she does something unexpected and you see the woman you fell in love with. she's everything to you. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently.
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welcome back to "the kudlow report." in this half hour, you know, folks, california is one screwed up state. they want green rj energy which makes them double up on fossil fuels. they want a carbon tax and with a 52% rate i heard their businesses are fleeing to arizona. former mississippi governor haley barbour has been appointed to do an autopsy on gop losses last month. we are going to look at the forensic evidence on this one. first up, take a listen to this one. one of the many radio ads by the
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kept of agriculture encouraging people to sign up for food stamps. >> would you look at margie? she looks amazing. >> she sure does. >> i wonder how she stays so fit? what's her secret? >> well, she told me that food stamp benefits help her eat right and she stays active, too. >> guess what. unfortunately this is working. despite an improving economy and declines in unemployment we learned the number of people on food stamps is still soaring. this is government dependency at its worst. here now is the story. political reporter from the daily caller and margie omara. margie, i have to go to you first. in some sense this is a bipartisan story. if you look at the evidence that's come out today and was reprinted, this starts with the bush administration, but it rolls up with the obama administration. why would we want taxpayer
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dollars to subsidize ads for what should be limited to an anti-poverty program but has become this grandiose public welfare dependency. >> well, a few reasons. first, when you look at food stamps it's actually lowered the poverty rate for children. a majority of snap recipients are children and seniors and the disabled. it's done a huge effort to make sure kids don't go hungry. we are not talking about -- we're talking about making sure kids get the food they need. a majority of americans support this proposal. they support -- they don't want to see food stamps be cut as a way to balance the budget. we tried the other approach of ko kond sengs, blame and denial. it may have cost mitt romney the election. >> when i hear an advertisement from the department of agriculture that says so and so
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is using weight and losing weight, becoming thin and trim that has nothing to do with poverty, helping poor kids. it has nothing to do except the government expanding its reach to suck more people into a federal program that we taxpayers have to pay for. >> you're right. the usda, it's business. on the website, it says our job is to increase food stamp participation. it says we feed 46 million healthy americans. they haven't updated it since the new numbers came out, but the usda wants as many americans as possible on this benefit. we all want to see children, the elderly, the disabled fed, but there are people who are not necessarily in those categories on this benefit. it is within the usda's best interest to keep them on it because they are able to increase their bottom line. >> i think, margie, it's
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outrageous and obscene for the ag department to run ads to take 2350d stamps and you will get fit and trim. it's utter nonsense. i worked in the federal government. that has nothing to do with the intent of food stamps. you say it's fallen from 10% to under 8%. food stamps use is rising, not falling. it's projected to decline and they will move in concert. a john mccain adviser said this is the best way to jump start the economy. it has the biggest banks. >> mark is a friend of mine. he never said anything about sending out radio ads to tell
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people to take food stamps to make them fit and trim. you have had a several point decline in unemployment which should signal a drop in the safety net programs which i favor when they drop. this is rising. disability is rising and they should be going south. i will accuse the democratic party of trying to make more people dependent on government programs. >> do you know how much the average meal per person on food stamps is? it's $1.50 per person per meal. that's not something anybody would wish on somebody else. >> but it's supplemental. >> people end up spending their benefits by the third week. then they have a week where they are on their own. you're talking about something that's very difficult, a
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struggle. and it's a temporary stop-gap measure. most people get off it in a year. as jobs numbers improve, you will see the number go down as well. >> when? this thing has gone up by $20 million in this recovery. when do those numbers go down? >> in the 1970s it was 1 in 50 americans on food stamps. now it's 1 in every 6.5 americans. glass half full, halfempty. add that extra half percentage points. but before the recession it was 1 in 11. after the recession it will still be 1 in 9 americans on food stamps. that has a lot to do with the expanded eligibility. these food stamps have been basically pushed on americans who don't need to be on them. >> we have moved from cash and benefits -- >> i have to tell you this.
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this is an example of the expansion of eligibility. i am all in favor of anti-poverty safety net programs, but i am not in favor of the agriculture department running ads, pushing food stamps for people to get thin and trim and in shape. that's government dependency at its worst. many thanks to caroline and margie. speaking of food, mcdonald's got a pop on reports that the fast food giant had a good november. that's thanks to the cheddar bacon onion sandwich, i guess. among other products, the company said global sales rose 2.5% at locations open at least 13 months. mickey d's and positive tech moves helped keep the markets in the green today with modest gains across the board. so mcd's continued to perform well in spite of the fiscal cliff 5and a million problems. what uh if i told you congress will solve at least the basic
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part of the tax cliff and maybe we'll go out and have a big mac to celebrate? let's talk to jack, ceo of bull & bear partners and a cnbc contributor. before we get to the fiscal cliff, mcdonald's going up, consumer food company, apple going down, consumer technology company. you have two different directions and stories. is there a linkage here? >> no. what you are seeing is one stock coming back to life and the other coming back to earth. everybody's looking at apple. it's been the talk and the tout of the industry. what you're seeing now is a situation where apple is just a victim of portfolios that are liquidating, looking for whatever is a winner. mcdonald's is a growth story. it's indicative of corporate america. there is a hidden story out there, larry. it's earnings. everybody is looking for the deceleration in earnings. they are looking for the contraction in earnings. they are not getting it. with that, of course, comes a
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p.e. which is bouncing right back. you know, i'm looking at a p.e. with forward earnings on the s & p under 13. you were talking about the fiscal cliff. >> i have seen estimates higher on the p.e. because the e. part is lower. let me just get to this point. i appreciate your point about earnings. the economy collapsing. it's not great, but it's not collapsing. if the middle class tax cuts are passed, as i believe they will. i believe the republicans are engaged in a strategic re tretr if those are passed by december 31 but there are still upper end tax hikes including income and capital gains, what does that do to the stock market, jack? the bulk of the tax cuts go down but the upper class goes up. what does that do? >> we see a new high on the
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year. >> we are two percentage points away from the yearly high. one of the reasons why volatility isn't as high as it is, look at the vix. the volatility index is almost nonexistent telling you more than likely the public isn't buying into this. i think you're right. i think there is something there that's very close to happening. if it does, it sends the s&p up anywhere from 40 to 50 points. probably within a week. high.t happens we are at an the real question is where does it take us next year? does it have traction? more importantly, will it lead into what i think is a real story which is going to be a move up to 1500 or 1600 s&p? >> last one. to get to 1500, 1600, don't you need a much stronger economy? >> no. we need an expansion of the multiple, larry. we need actually some optimism and confidence coming back in. we could see earnings stay exactly where they are. maybe contract a little bit.
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and see an actual confidence-building measure which takes us to that level. >> jack, thank you very much. now, folks, the republican national committee is appointing a special team of forensic medical examiners to figure out what went wrong in last november's election. we have the captain of the team coming up next. to the best vacation spot on earth.
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and all of us who call the gulf home. how in the world did the gop go from huge victories in 2010 to the defeat in 2012? how did this happen? what went wrong? the national republican committee has now launched an effort to examine what worked and what didn't. joining us now, former mississippi governor and former rnc chair, haley barbour. as always, thank you, sir. >> thank you, larry. >> it's hard to figure. i have been around not as long as you, but i have been around. you were at the top of the world, november 2010. then look what happens in november 2012. in the middle of those two dates is a very anemic economy. how did the gop go from here to here? how did that happen? >> well, larry, you put your finger on why the chair of the rnc has done what he's done to
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order a very serious in depth comprehensive, iny opinion, ruthless view of why we lost the presidential election. many of us believe we should have won. certainly we could have won. that's what this is going to be about -- technology, message. it's going to be very inclusive to let people participate in it. but you have asked the right question. and the party is going to do its very dead level best to get to the bottom of it so we'll have an answer and it won't happen again. >> did we lose some of it -- 2010 messages? for example, spending reduction, deficit and debt reduction, obama care roll back, economic growth, tax reduction, things of that sort? were those traditional gop messages that worked so well in 2010 missing, downplayed or maybe, you know, stirred in a bigger pot where they didn't quite come through? >> look, larry, if you ask me, the lesson of 2012, is it
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negative campaign still work in america? one of the first rules i was taught is that an attack unanswered is an attack admitted. the obama people, by their own bragging in various news stories, decided they were going to try to smear romney, make him unacceptable in the spring and summer. for whatever reason, he didn't respond. so despite the fact that obama has governed with very bad policies to failed results, he was able to squeak out a victory. he got 50-point-something percent of the vote. you're right. it's not because the country -- look at what's going on today. it's a perfect example. we don't have a 1.4 trillion deficit because we taxed too little. we spend too much. 90% of the people watching this show knows it. >> look, i give president obama a lot of credit.
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those guys ran a brilliant campaign. i don't feel like attacking mitt romney. but it is what it is. i don't know if you agree with me. there has to be a better republican policy toward immigration, not only latinos but asians, but particularly with respect to the latino story, there's got to be legal work permits, some legal path to citizenship. we've got to treat them like they belong here. immigrants create opportunity, economic growth, immigrants have a strong spirit. i think this is something that killed the party. >> well, larry, you're exactly right about policy. if republicans will be for the right economic policy for our country on immigration we will be for the right political policy because we are in a global battle for capital and labor. we are blessed with this labor in the united states. biggest industry in my state is chicken, poultry. virtually every person who works
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in a chicken processing plant speak english as a second language. they are all spanish speakers. the same is true in arkansas, alabama, all across the poultry bill. we need them to do the jobs. that's the biggest agricultural product in my state. where would we be without those workers? we need a guest worker program, many more h-1-b visas. the eb-5 a program needs to work better, but good economic policy about immigration will solve the republicans' political problems. >> a more enlightened imkbrags policy is in line with an enlightened economic growth policy, haley barbour. >> of course. >> we have to make the connection. we appreciate it. former governor haley barbour. now, folks, is california the most screwed up state in the country? besides tax hike it is more wind and solar power they mandate
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requires more fossil fuels to lift it up. michael reagan is crying out for help from las vegas. next up on california. bob, these projections... they're... optimistic.
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at any chase depositfriendly atm and checks right from your smartphone. get rid of prepaid problems. get chase liquid. california's renewable energy mandate actually requires more investment in fossil fuels. that makes everything more redundant and expensive. it's all propelling more people out of california. they're going to nevada, arizona, texas.
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they're going everywhere except cal. here's michael reagan, political consultant and author of the new reagan revolution. thanks for coming back on. it doesn't have to be this way. this is the most screwed up state in the country. >> and then they voted to raise taxes the 13.3%. the millionaire's tax that starts at $250,000 per household. they wonder why people are leaving. 17 companies are month are leaving the state of california. but worse, they are taking their workers with them to the state of arizona, nevada, texas and what have you. people are leaving the state, not moving into it. >> this renewable energy thing is hilarious. what if there's no wind, no sun. they have to have backup of fossil fuel generators, turbines and whatnot. you have to have the great green energy experiment which doesn't work. instead they have to double up on fossil fuels which costs
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everybody a fortune. >> it all started under governor arnold schwarzenegger with the cap and trade, green energy bill. it's expanded since then. this year you have the governor of the state of california, brown, sign the executive order requiring that every new home built in 2014 have a roof capable of holding a solar panel. he signed another executive order requiring every state company that has a company of 10,000 square foot or more in building be required to supply with a zero footprint their own energy source being solar or wind by the year 2025. driving through california, past a company. they have their own windmill and their own solar panel for their own power supply. it's absolutely ridiculous and outrageous. that's why you see people leaving. >> it costs a fortune. this stuff costs a fortune.
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carbon tax, michael reagan. california has gone for a carbon tax. there may be a federal carbon tax. part of president obama's agenda is possibly to institute a carbon tax because of his dream of green energy and because he needs the money. cal would be doubling up there, too. twice on the carbon tax. >> everything's doubling up. the taxes that they just laid on us, retroactive to january 1, 2012. the president wanted to increase taxes again on the richest 2% of the oh population. we make our effective tax rate in the state of california over 52%. something else. my energy bill i get every month, i pay $200 a month for the right for the department of water and power to give me energy in my house. if i never slip a switch, never turn on a faucet, $200 a month. i spend another $200 a month to underwrite those who can't afford water or flipping a
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switch in their house. there is no competition to the department of water and power in los angeles. if i use less power as i might do the department of water and power goes to l.a. city council to get a 10% increase in what they are paid. this is the game that's being played in the state of california. i know one thing. i know something now, lawrence, that i never knew in my life. i tweeted it over the weekend. i know what i'm going to make next year. i'm going to make 249,900 dollars. >> so you don't have to pay -- that's funny. >> i never knew it before. i always guessed. now i know. >> married, filing jointly. $249,999. i know how much i'll make next year. thanks to obama and the voters. $249,000. live small. michael, judy and i lived in california for a while. it has so much potential. it doesn't have to be this way. they could fix it with better policies.
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>> absolutely. >> many thanks no michael reagan. on a more somber note over the weekend a great man and a dear friend of mine, saul steinberg passed away. he was a brilliant financier, a devoted family man and an ardent supporter of free market capitalism. i want to personally express my deepest condolences to saul's family. may he rest in peace. a brilliant man, a wonderful man, an old friend of mine. we shall miss him. the whole world shall miss saul steinberg. that's it for this evening. i'm larry kudlow. we'll be back tomorrow night from washington, d.c. americans believe they should be in charge of their own future.
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